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SOCIETY REGISTRATION IS NOT A LAND-GRAB TARGET, RULES BOMBAY HC
On July 2, the Bombay High Court dismissed Writ Petition No. 7855 of 2026 filed by Elite Diagnostic Centre Pvt. Ltd. against Krishna Kunj Co-operative Housing Society, Santacruz (West) — a society registered on March 23, 1981. The company had challenged the Co-operation Minister's order of May 6, 2026, which restored the society's registration after a Divisional Joint Registrar had de-registered it in September 2024. Justice Sandeep V. Marne upheld the Minister: the power to de-register under Section 21A of the MCS Act, 1960 is a narrow one, exercisable only where registration was secured through deliberate misrepresentation in the information supplied at the time of registration itself — misrepresentation of such degree that, without it, the society would not have been registered. The judgment opens by recording what it calls a rather unusual circumstance: the petitioner-company's director is himself a member of the society — first through a flat, now through a garage he still owns — has served as its office bearer, and stood impleaded as a respondent in his own company's petition. The company argued garage owners cannot be members; its director holds his membership through a garage. The petitioner had pointed to later developments — the title dispute, allegations of illegal construction, and the 2014 rejection of the society's deemed conveyance application — as grounds to unwind the 1981 registration. The court rejected that approach entirely: misrepresentation must be found in the registration proposal itself and cannot be assumed from events occurring after registration. The court also rejected the argument that garage purchasers inflated the member count: the registration proposal had openly disclosed six flats and four garages, and an authority's error of judgment in accepting garage occupiers as eligible members under Section 6 is not the applicants' misrepresentation. Most significantly, the court expressly held that the petitioner's real motive was "securing title in respect of the land" — a dispute that cannot be adjudicated in de-registration proceedings, nor can those proceedings be misused for that veiled objective. For old societies in Mira-Bhayandar, Thane and the suburbs — many of which face rival title claimants precisely when redevelopment negotiations begin — the ruling substantially weakens a pressure tactic that has circulated for years: the threat that a society's very registration can be attacked to force it to the table. Full analysis of Section 21A and what societies under similar threat should do appears on Page 2.
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